CHINA AND

HONG KONG
QUARTERLY CONSTRUCTION
COST REVIEW

Arcadis Asia Limited

Arcadis Hong Kong Limited 2018 QUARTER
THIRD
 CONTENTS
HONG KONG MARKET OVERVIEW............................................................................................ 3

MARKET ANALYSIS............................................................................................................................ 4

APPROXIMATE BUILDING COSTS - HONG KONG................................................................. 5

BUILDING & BUILDING SERVICES PRICE INDEX - MAINLAND CHINA ........................ 6

TENDER PRICE INDEX - HONG KONG....................................................................................... 7

MATERIALS - MAINLAND CHINA ................................................................................................. 8

LABOUR................................................................................................................................................. 9

GROSS VALUE OF CONSTRUCTION WORK PERFORMED - MAINLAND CHINA.......... 10

GROSS VALUE OF CONSTRUCTION WORK PERFORMED - HONG KONG................. 11

APPROXIMATE BUILDING COSTS FOR MAJOR CITIES - ASIA.......................................... 12 - 15

Statistical data is compiled from sources deemed reliable but accuracy is not guaranteed.
The information contained herein should be regarded as indicative and for general guidance only.
Whilst every effort has been made to ensure accuracy, no responsibility can be accepted for errors
and omission, however caused. All rights reserved. Reproduction of this data, in whole or in part,
is permitted providing the source is quoted.

QUARTERLY CONSTRUCTION COST REVIEW

2 THIRD QUARTER 2018
 HONG KONG
MARKET OVERVIEW

The Chief Executive’s 2018 Policy Address built on last year’s Address by acknowledging Hong Kong’s need to do
more to challenge the shortage of public housing and land supply. These pivotal topics that underpin Hong Kong’s
construction industry have been earmarked with potential solutions such as land reclamation, use of brownfield
sites and the allocation of more land.

The lack of land to build on and a shortage of affordable housing is a
consistent challenge in Hong Kong and other major cities around Asia.
Hong Kong has limited resources and is going to require positive action
to meet the needs of its citizens.
These challenges add a premium to the price of real estate, but
improving construction productivity and cost effectiveness through
innovation and technology are opportunities that were highlighted
as potential areas that could help mitigate the overall rising cost of
construction.
Progress can be witnessed in Hong Kong’s first pilot project to adopt
Modular Integrated Construction (MiC) with the Disciplined Services
Quarters for the Fire Services Department at Pak Shing Kok, creating
interest around how introducing alternative construction methods can
be further aligned with current and future works.

MARKET MOVEMENT

ECONOMY SUPPLY & DEMAND

Indicator 2016 Q2 2017 Q2 2017 Q3 Indicator 2016 Q2 2017 Q2 2017 Q3

GDP Growth Q2/16 - Q1/17 Q1/17 - Q1/18 Q2/17 - Q2/18 Activity Level (Gross Q2/17 Q1/18 Q2/18
per annum (+) 3.9% (+) 4.6% (+) 3.5% output; new + A&A) HK$62.554 Bn HK$64.322 Bn HK$61.543 Bn

Inflation Rate (CPI) Aug 16 - 17 May 17 - 18 Aug 17 - 18

per annum (+) 1.9% (+) 2.1% (+) 2.3%

BASIC COSTS CONSTRUCTION COST TREND

Indicator 2016 Q2 2017 Q2 2017 Q3
Indicator 2016 Q2 2017 Q2 2017 Q3
Highways Apr - Jun17 Jan - Mar 18 Apr - Jun 18
Material Index 744.4 822.6 837.4 Tender Price Index Q3/17 Q2/18 Q3/18
(Arcadis) 1957 1910 1885
Labour May - Jul 17 Feb - Apr 18 May - Jul 18
Wages Index 155.5 148.5 148.0

QUARTERLY CONSTRUCTION COST REVIEW

THIRD QUARTER 2018 3
 1 MARKET ANALYSIS
DROP IN GROSS VALUE OF CONSTRUCTION
WORK PERFORMED
Hong Kong’s construction industry witnessed a decrease of 4.3%
Quarter-on-Quarter (QoQ) and 1.62% Year-on-Year (YoY) in its gross
value output. This market movement was due to a significant drop
in output in public sector works of 14.5% YoY. In contrast, the private
sector recorded an increase in output of 3.3% YoY with all other
works increasing by 8.1% YoY. The remainder of 2018 is expected
to be stable, but depending on the approval rates from LegCo in
submitted proposals, it might see an increase in activity, if not this
year, then potentially in 2019. The Tender Price Index (TPI) has seen
a 1.3% decrease QoQ and 3.68% decrease YoY. This downward
trend has continued from the second quarter of 2018 and is likely to
extend throughout the remainder of 2018, especially on buildings.
The Hong Kong economy enjoyed continued growth for the seventh
quarter in a row at more than 3%, creating market stability and
positive sentiment towards public and private construction spending.
COST OF MATERIALS AND LABOUR
Steel price has increased from a market low in early 2016 and
has remained stable since December 2017. Prices for other core
materials such as cement, diesel and basic architectural products
also remain stable in the third quarter of 2018. However, the price
of sand has increased along with floor tiles. Construction workers’
wages, including bar benders, electrical and mechanical workers
remained stable at peak levels, but joiner’s rates dropped slightly
along with the Labour Wage Index (LWI) 0.3% QoQ and 4.8% YoY.
ALTERNATIVE LAND SUPPLY
A critical talking point from 2018 Policy Address is the “Lantau
Tomorrow Vision”, which proposes to build several artificial islands
equating to 1,700 hectares to ease Hong Kong’s overcrowding. The
debate aside to whether this project should proceed, the increase
QUARTERLY CONSTRUCTION COST REVIEW
4 THIRD QUARTER 2018
in works for the construction industry would be significant, but
from a material perspective questions need to be asked around
supply of critical resources such as sand to support potential
land reclamation works. With most resources being imported,
costs could rise creating a supply and demand issue requiring
the government to look at alternative construction methods.
The government will commence a study on the reclamation
feasibility and how it can increase land supply and drive economic
development.
CHINA OVERVIEW
In the third quarter of 2018, the cost of China’s major construction
materials continued to rise. Compared with the second quarter
of 2018, basic construction products such as steel and concrete
also increased by 8% and 2% respectively, which is consistent with
labour wages that increased by 4.8% p.a. Due to the environmental
protection policies, manufactory productivity is expected to be
limited in the fourth quarter, with material prices anticipated to rise
subsequently.
Land area sales increased by 15.7% throughout China from
January, to September of this year. However, there were 935
auctions that were aborted, showing that the overall increase in
land sales could have been significantly higher. The terminated
transactions are broken down with 13 in Tier 1 cities, 197 in the Tier
2 cities and 725 in the Tier 3 and 4s. The premium rate of land price
in Tier 2 and 3 cities is also dropping, with real estate developers
indicating a more cautious approach in their investments.
Despite this cautious approach, real estate developers are
continuing to see growth in their turnover rate as the accumulated
sales amount from January to September increased by 13.3% YoY.
However, the growth of sales area 2.9% YoY is slower than the
growth of new commencement projects area 16.4% YoY, some
developers’ stock is increasing.
 2 APPROXIMATE BUILDING COSTS
HONG KONG
Notes:
1. The costs for the respective categories given are
averages based on fixed price competitive tenders. It
must be understood that the actual cost of a build-
ing will depend upon the design and many other
factors and may vary from the figures shown.
2. The costs per square metre are based on
Construction Floor Areas (CFA) measured to the
outside face of the external walls /external perim-
eter including lift shafts, stairwells, balconies, plant
rooms, water tanks and the like.
3. All buildings are assumed to have no basements
(except otherwise stated) and are built on flat
ground, with normal soil and site conditions. The
cost excludes site formation works, external works,
land cost, professional fees, finance and legal
expenses.
*The above cost are at 3rd Quarter 2018 levels.
BUILDING TYPE
DOMESTIC
Apartments, high rise, public authority
standard
Apartments, high rise, average standard
Apartments, high rise, high end
Terraced houses, average standard
Detached houses, high end
OFFICE / COMMERCIAL
Medium/high rise offices, average
standard
High rise offices, prestige quality
Out-of-town shopping centre, average
standard
Retail malls, high end
INDUSTRIAL
Owner operated factories, low rise, light
weight industry
HOTEL
Budget hotels - 3-star, mid market
Business hotels - 4/5-star
Luxury hotels - 5-star
OTHERS
Underground/basement car parks
(<3 levels)
Multi storey car parks, above ground
(<4 levels)
Schools (primary and secondary)
Students’ residences
Sports clubs, multi purpose sports/
leisure centres (dry sports)
General hospitals - public sector
HK$/m2 CFA OUTLINE SPECIFICATION
11,000 - 13,500 Apartment units with fit-out, based on Hong Kong Housing
Authority Non-standard Cruciform Block design
Apartment units with fit-out, including air-conditioning,
23,900 - 28,000 kitchen cabinets and home appliances, but excluding
decorative light fittings and loose furniture
Apartment units with good quality fit-out, including air-
31,600 - 36,900 conditioning, kitchen cabinets and home appliances, but
excluding decorative light fittings and loose furniture
Houses with fit-out, including air-conditioning, kitchen
32,500 - 38,000 cabinets and home appliances, but excluding decorative
light fittings, loose furniture, garden and parking
Houses with good quality fit-out, including air-conditioning,
48,000 up kitchen cabinets and home appliances, but excluding
decorative light fittings, loose furniture, garden and parking
23,400 - 27,500 RC structure, curtain wall/window wall, including public area
fit-out, tenant area with screeded floor, painted wall and ceiling
RC structure, curtain wall, including public area fit-out, tenant
28,500 - 33,500
area with raised floor/carpet, painted wall and false ceiling
23,200 - 27,700 Including public area fit-out and M&E, but excluding shop
fit-out
31,100 - 37,100
18,200 - 23,200 RC structure, including small office with simple fit-out and
M&E, but excluding a/c and heating
30,200 - 32,700 1) Interior decoration
2) Furniture (fixed and movable)
3) Special light fittings (chandeliers, etc.)
31,600 - 37,100 4) Operating Supplies and Equipment (OS&E) excluded
37,000 - 43,000
25,000 - 30,000 RC structure
15,000 -18,000 RC structure, natural ventilation, no facade enclosure
19,700 - 21,200 Public authority standard, including fit-out, no a/c, complete
with basic external works but excluding educational
equipment
22,900 - 25,900 Including fit-out, loose furniture and a/c
30,000 - 35,000 Dry sports (no swimming pool) and are for ‘leisure centre’
type schemes including main sports hall, ancillary sports
facilities, changing and showers, restaurant / cafe, bar, etc.
Costs include a/c, Furniture, Fittings and Equipment (FF&E)
38,800 - 43,800 Excluding medical and operating equipment
QUARTERLY CONSTRUCTION COST REVIEW
THIRD QUARTER 2018 5
 3
BUILDING & BUILDING SERVICES
PRICE
Building INDEX
& Building
3 – Mainland China
Services Price Index
MAINLAND CHINA
Index
190

180

170

160

150

140

130
Index (Projected by Arcadis)
(4th Quarter 2002 = 100)
120

110

100
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Building & Building Services Price Index

Published (by NBS of China) Projected (by Arcadis)
BUILDING & BUILDING SERVICES PRICE INDEX
Index (Base : Corresponding Quarter in (Base : Q4/2002 = 100)
PublishedPreceding
(by NBSYear
of China)
= 100) Projected
(see (bynotes
explanatory Arcadis)
below)
Index
Quarter / Year(Base : Corresponding
2015 2016 Quarter
2017 in 2018 2015 (Base : Q4/2002
2016 = 100) 2018
2017
1st Quarter Preceding
98.6 Year = 100)
96.4 106.4 108.4 (see explanatory
150.3 144.9 notes
154.1below)
167.1
Quarter / Year
2nd Quarter2015 98.2 2016 99.1 2017106.5 2018
106.9 2015
153.3 2016
152.0 2017
161.8 2018
173.0
3rd Quarter98.6
1st Quarter 96.3 96.4 100.0 106.4109.0 107.2
108.4 154.6
150.3 154.6
144.9 168.5
154.1 180.7
167.1
4th Quarter98.2
2nd Quarter 95.9 99.1 102.2 106.5110.1 106.9 156.6
153.3 160.0
152.0 176.2
161.8 173.0
Source : National96.3
3rd Quarter Bureau of Statistics
100.0 (NBS) of109.0
China 107.2 154.6 154.6 168.5 180.7
4th Quarter 95.9 102.2
95.91 110.1
02.2 156.6 160.0 176.2
Explanatory Notes:
Source : National Bureau of Statistics (NBS) of China

Data are published on a quarterly basis, measuring the year-on-year change in price level of each quarter,
but the quarter-on-quarter change is not published, ie. the changes between consecutive quarters are not given.
Notes:
Data are published on a quarterly basis, measuring the 2. For 2002 and before, indices were only published annually.
year-on-year change To give
in price levelan illustration
of each of the This
quarter, but the price trend
annual over time,
index indicates that the Arcadis applies
average fluctuation a hypothetical calculation to derive the data table
of 2002 and chart
quarter-on-quarter change is not published, ie. the changes was moderate. Arcadis’ own in-house data further substantiates
as above, basing
between consecutive quarters are not given. on the following understanding and assumptions:
that the construction costs in 2002 were rather stable
throughout the year.
To give an illustration of the price trend over time, Arcadis
3. Changes between quarters in 2002 are assumed to be
applies a hypothetical1. Only indices from 1st Quarter
calculation to derive the data
and chart as above, basing on the following understanding
table 2003 and
evenly distributed onwards
throughout the year.are published.
This establishes a
and assumptions: notional relationship between the four quarters in 2002 and
can be compared with the published data for 2003 to find their
1. Only indices from2.1stFor
Quarter 2002
2003 andand before,
onwards are indices were
notional only published
quarter-on-quarter changes. annually. This annual index indicates that the average
published.
fluctuation of 2002 was moderate. Arcadis' own
4. For comparison purposes, in-house
4th Quarter datatofurther
2002 is referred as substantiates that the construction costs
base and the base index as 100.
in 2002 were rather stable throughout the year.

3. Changes between quarters in 2002 are assumed to be evenly distributed throughout the year.
This establishes a notional relationship between the four quarters in 2002 and can be compared with the published
data for 2003 to find their notional quarter-on-quarter changes.

QUARTERLY4.CONSTRUCTION
For comparison purposes,
COST REVIEW 4th Quarter 2002 is referred to as base and the base index as 100.
6 THIRD QUARTER 2018
 2,200 300

2,000 280
1,800 260

4 TENDER PRICE INDEX

1,600
240
1,400
HONG KONG 4 Tender Price Index - Hong Kong 220
1,200
Index
200
Index
2,200 300
1,000
2,000
Notes: 180
280

800
1. [*] denotes forecast figures. 1,800 260
2. Both BWTPI (ArchSD) and Arcadis TPI measure the trend of general
builder’s works only. Special works and Mechanical and Electrical 1,600
160
240
600
Services would have to be considered separately.
1,400
3. All indices were published quarterly. For reference purpose, only 220
indices from 1st quarter of 1998 and onwards are given in detail,
400
whereas indices between year 1970 to1997 are shown with their 4th
1,200 140
200
Quarter figures. 1,000
180
200 800 120
160
600
0 400 100
140
'70 '78 '86 '94 '99 '01 '03 '05 '07 '09 '11 '13 '15 '17 '19
Year 200 120

0 100
ArchSD BWTPI Year
'70 '78 '86 '94 Arcadis
'99 '01 TPI'05 '07 '09 '11 '13 '15 '17 '19
'03

Arcadis TPI (as at the 4th Quarter) ArchSD BWTPI ArchSD BWTPI (as atTPI
Arcadis the 4th Quarter)
Arcadis TPI (as at the 4th Quarter) ArchSD BWTPI (as at the 4th Quarter)
Arcadis TPI (Forecast) ArchSD BSTPI (as
Arcadis TPI (Forecast) at BSTPI
ArchSD the 4th
(as atQuarter)
the 4th Quarter)

ArchSD BSTPI ArchSD BSTPI

Quarter / Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ArchSD BWTPI (Base = 100, at Year 1970)
Quarter / Year 2009 2010 2011 2012
Q1 20131134 2014
1074 1273 1414 2015
1516 20161732 2017
1621 1775 1779 2018
1755
Q2 983 1161 1320 1438 1532 1648 1761 1776 1776 1727
Q3 1111 1249 1369 1467 1559 1679 1777 1783 1773
ArchSD BWTPI (Base = 100, at Year 1970)
Q4 1107 1266 1408 1496 1590 1703 1775 1781 1768
Q1 1074 1134 1273 1414 1516 1621 1732 1775
ArchSD BSTPI (Base = 100, at Year 1989) 1779 1755
Q1 128 130 149 149 193 211 (N/A) 257 208 (N/A)
Q2 983 1161 1320 1438
Q2 1532 135
134 1648
162 200 1761 230 1776 189
178 1776
236 210 1727
258
Q3 1111 1249 1369 1467
Q3
Q4
1559 143
129
133 148
1679
187
175
281
203
1777 215
219
1783 225
(N/A)
(N/A) 196
1773
257
249
(N/A)
287
Q4 1107 1266 1408 1496 1590 1703TPI (Base1775
Arcadis 1781
= 100, at Year 1970) 1768
Q1 1245 1297 1385 1511 1688 1789 1946 1992 1975 1920
ArchSD BSTPIQ2(Base =1242
100, at
1315Year 1989)1552
1425 1713 1808 1958 1992 1968 1910
Q3 1253 1342 1452 1595 1747 1857 1963 1993 1957 1885
Q1 128 130 149 Q4149 193 1367 211
1273 1491 1632 (N/A)1786 257
1903 1984 208
1986 (N/A)
1946 1870*
Q2 134 135 162 200
Source : Competitive 230
tenders 178Building Works
received by Arcadis, 189 236(BWTPI) 210
Tender Price Index 258
and Building Services Tender Price Index (BSTPI) of Architectural Services Department (ArchSD) of HKSAR
Q3 129 143 187 281 215 (N/A) 225 257 (N/A)
Q4 133 148 175 203
Note : 1. [*] 219
denotes forecast figures (N/A) 196 249 287
Arcadis TPI2. (Base = 100, at Year 1970)
Both BWTPI (ArchSD) and Arcadis TPI measure the trend of general builder's works only.
Special works and Mechanical and Electrical Services would have to be considered separately.
Q1 1245 1297 1385 1511 1688 1789 1946 1992 1975 1920
3. All indices were published quarterly. For reference purpose, only indices from 1st quarter of 1998 and onwards

Q2 1242 1315 1425 1552 1713 1808 1958 1992 1968 1910
are given in detail, whereas indices between year 1970 to 1997 are shown with their 4th Quarter figures.

Q3 1253 1342 1452 1595 1747 1857 1963 1993

QUARTERLY 1957
CONSTRUCTION COST REVIEW1885
7
Q4 1273 1367 1491 1632 1786 1903 1984 1986 1946 1870*
THIRD QUARTER 2018

Source : Competitive tenders received by Arcadis, Building Works Tender Price Index (BWTPI)
and Building Services Tender Price Index (BSTPI) of Architectural Services Department (ArchSD) of HKSAR

Note: Competitive
Source : 1. [*] denotes forecast
tenders received figures
by Arcadis, Building Works Tender Price Index (BWTPI)
and Building Services Tender Price Index (BSTPI) of Architectural Services Department (ArchSD) of HKSAR
2. Both BWTPI (ArchSD) and Arcadis TPI measure the trend of general builder's works only.
Note : 1. [*] denotes forecast figures
Special works and Mechanical and Electrical Services would have to be considered separately.
2. Both BWTPI (ArchSD) and Arcadis TPI measure the trend of general builder’s works only.
Special works and Mechanical and Electrical Services would have to be considered separately.
3. All indices were published quarterly. For reference purpose, only indices from 1st quarter of 1998 and onwards
3. All indices were published quarterly. For reference purpose, only indices from 1st quarter of 1998 and onwards
are given in detail, whereas indices between year 1970 to 1997 are shown with their 4th Quarter figures.
are given in detail, whereas indices between year 1970 to 1997 are shown with their 4th Quarter figures.

QUARTERLY CONSTRUCTION COST REVIEW

THIRD QUARTER 2018 7
QUARTERLY CONSTRUCTION COST REVIEW
THIRD QUARTER 2018 7
 Pink coloured are updated figures and charts

5
MATERIALS
Pink coloured are updated figures and charts
5 Materials
MAINLAND CHINA
Mainland5 China
Materials
Mainland China % Change
Construction Material Prices 20%
% Change
Year-on-Year
CONSTRUCTION Change
MATERIAL PRICES
Construction Material Prices 20%
15%
YEAR-ON-YEAR
Quarter / Year 2016 CHANGE
2017 2018
Year-on-Year Change
15%
1st Quarter Quarter 2017
(-)7.2% /(+)8.5%
Year 2016
2018 201710% 2018
(+)11.6%
Quarter / Year 2016
1st Quarter (-)7.2% (+)8.5% (+)11.6%
(-) (-)3.0% (+)(+)8.7% (+)(+)8.7%
10%
1st2nd Quarter
Quarte r 7.2% 8.5% 11.6%
2nd Quarter (-)3.0% (+)8.7% 5%(+)8.7%
2nd3rd Quarter
Quarter (-) (-)1.4%
3.0% (+)12.4%
(+) 8.7%
3rd Quarter (+)(+)9.1%
8.7%
(-)1.4% (+)12.4% (+)9.1% 5%

3rd4th Quarter
Quarte r (-) (+)1.9%
1.4% (+)(+)13.9%
4th Quarter 12.4% (+)1.9%
(+) 9.1%(+)13.9%0% 0%
Source : National
4th Quarte r Bureau of Statistics
(+)Source
1.9% : National of China
Bureau
(+) 13.9% of Statistics of China
-5% -5%
Source : National Bureau of Statistics of China Construction Material Prices
Construction Year-on-Year
-10% Material Prices
-10% Change
Year-on-Year Change
-15%
-15% 2010 2011 2012 2013 2014 2015 2016 2017 2018
2010 2011 2012 2013 2014 2015 2016 2017 2018
Basic Construction Materials
Basic Construction Materials
Basic Construction Materials US$/Tonne RMB/m3
12,000 650
US$/Tonne RMB/m3 600
10,000
12,000 650
550
8,000
10,000 600
500
6,000
550 450
8,000
4,000
500 400
Copper, CIF European port
6,000 2,000 350 Ready Mix Concrete, 40 MPa
450
4,000 0 300
400
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Copper, CIF European port
Shanghai Construction & Construction Material
2,000 Source : London Metal Exchange 350 Industry Ready MixDepartment
Administration Concrete, 40 MPa

0 300
2009 2010 2011 2012 RMB/Tonne
2013 2014 2015 2016 2017 2018 2009 2010RMB/Tonne
2011 2012 2013 2014 2015 2016 2017 2018
6,000 700
Shanghai Construction & Construction Material
Source : London Metal Exchange
Industry Administration Department
5,000 600

4,000
RMB/Tonne RMB/Tonne 500
6,000 700
3,000 400

5,000 2,000 600 300

Steel Reinforcement, Grade III
Portland Cement, 42.5 MPa
4,000 1,000 500 200
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Shanghai Construction & Construction Material Shanghai Construction & Construction Material
3,000 Industry Administration Department 400 Industry Administration Department

2,000 300
Steel Reinforcement, Grade III QUARTERLY
Portland CONSTRUCTION
Cement, 42.5 MPaCOST REVIEW
8
1,000 200 THIRD QUARTER 2018
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Shanghai Construction & Construction Material Shanghai Construction & Construction Material
Industry Administration Department Industry Administration Department

QUARTERLY CONSTRUCTION COST REVIEW

THIRD QUARTER 2018
8

QUARTERLY CONSTRUCTION COST REVIEW

8 THIRD QUARTER 2018
 6
Pink coloured are updated figures and charts
LABOUR
6 Labour
Pink coloured are updated figures and charts

Mainland Mainland China

China
6 Labour % Change
Pink
Construction Labour Prices coloured are
20% updated figures and charts
Mainland China
Year-on-Year Change Construction Labour Prices
CONSTRUCTION LABOUR
Quarter / Year 2016PRICES2017 % Change
2018 Year-on-Year Change

YEAR-ON-YEAR
Construction 6
CHANGE
Labour
1st Quarter Labour
Prices
(+)3.7% (+)3.6%
20% (+)3.5%
15%

2nd Year-on-Year Change

Quarter (+)3.6% (+)3.5% (+)4.6% Construction Labour Prices
Quarter / Year 2016
Quarter / Year 2016
2017
2017
2018
Mainland China 10%
Year-on-Year Change
3rd Quarter (+)3.3% 2018
(+)4.0%
15% (+)4.8%
1st Quarter1st Quarter4th (+)3.7%
(+)Quarter
3.7% (+)3.6%
(+) 3.6% (+)3.5%
(+) 3.5% % Change
(+)3.4% Construction
(+)4.5% Labour Prices 20%
2nd Quarter (+)3.6% (+)3.5% (+)4.6% 5%
2nd Quarter Source(+): 3.6% (+) 3.5%
National Bureau of Statistics 10%
Year-on-Year
(+) of China Change
4.6% Construction Labour Prices
3rd Quarter (+)3.3% (+)4.0% (+)4.8% Year-on-Year Change
Quarter / Year 2016 2017 2018 15%
r Quarter (+) 3.3%
3rd Quarte4th (+)3.4% (+) 4.0%
(+)4.5% (+) 4.8%
1st Quarter (+)3.7%
5% (+)3.6% 0%
(+)3.5%
4th Quarte r : National Bureau
Source (+) 3.4% of Statistics
(+) of 2nd Quarter
China
4.5% (+)3.6% (+)3.5% 2010 2011 2012 2013 2014 2015 2016 20172018
(+)4.6%
10%
3rd Quarter (+)3.3% (+)4.0% (+)4.8%
Source : National Bureau of Statistics of China
4th Quarter 0%
(+)3.4% (+)4.5% -5%
2010 2011 2012 20135%2014 2015 2016 20172018
Source : National Bureau of Statistics of China

-5%
0%
2010 2011 2012 2013 2014 2015 2016 20172018

Hong Kong % Construction Workers in HKSAR

-5%
HK$
30 $20,000
Median Monthly Earning (HK$)
% Construction Workers in HKSAR HK$
30 $20,000 $18,000
25
Median MonthlyUnemployment
Earning (HK$) Rate (%) - All
%
Construction Trades Construction Workers in HKSAR HK$
Unemployment Unemployment
30
Rate (%) - Monthly Earning (HK$)
$18,000 $16,000
$20,000
25 Rate (%) - All Median
20 Foundation & Superstructure
Construction Trades
$18,000
Rate (%) - 25 Rate (%)
Unemployment Unemployment Unemployment Rate (%) - All $16,000 $14,000
-
Construction Trades
20 Foundation & Superstructure
Decoration & Maintenance $16,000
15
Unemployment Rate (%) - 20
Unemployment Rate (%) -
Foundation & Superstructure
$14,000 $12,000
Decoration & Maintenance
Unemployment Rate (%) - $14,000
15 $12,000
15
Decoration & Maintenance
$10,000
$12,000
10
$10,000
10 $8,000
$10,000
10
5 $8,000 $8,000
5 $6,000
5
$6,000 $6,000
0 $4,000
2013 $4,000
0 0 $4,000
1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2015 2017
1993 1995 1997 1999 1993 2003
2001 1995 2005
1997 20071999 2001
2009 20032011 200520132007 2015
2009 2017
2011 2013 2015 2017
Year Year
Year
Source : Census & Statistics
Source :Department, Hong
Census & Statistics Kong SAR
Department, Hong Kong SAR
Source : Census & Statistics Department, Hong Kong SAR

No. of Workers Employed Age

No. of No.
Workers AgeEmployed
No.
Group of Workers Employed Age Age
Age GroupAge Group Age Group of Workers Employed by Construction Industry 15 - 24
by Construction by Construction
Industry Industry 15 - 24 15 -7.3%
24 Age
by Construction
Age 15 - 24Industry 34,506 7.3%
Age 15 - 24 34,506 7.3% 7.3% Age 7.3% Age
25 - 39
Age 15 - 24Age 15 - 24 34,50634,506
Age 25 - 397.3% 7.3% 123,095 26.1%
26.1%
Age 25 - 39 Age 25 - 39 123,095 Age ≥ 40123,095
26.1% 26.1%
313,379 66.5% 25 - 39 25 - 39
Age 25 - 39 123,095 26.1% 26.1%
Age ≥ 26.1%
Age ≥ 40 Age ≥ 40 Total (as at June313,379
313,379 2018)
66.5%: 470,980
66.5% 100.0%
313,379 66.5% 40
Total (as atTotal
June(as
2018) : 470,980
at June 2018) : 100.0%
470,980 100.0% Age ≥ Age ≥
66.5%
Total (as at June 2018) 470,980 100.0% 40 40
Source : Construction Industry Council 66.5% 66.5%
Source : Construction Industry Council
Source : Construction Industry Council Age Distribution of Workers
Source : Construction Industry Council
Age Distribution of Workers
QUARTERLY CONSTRUCTION COST REVIEW
Age Distribution of WorkersTHIRD QUARTER 2018 9
Age Distribution of Workers
QUARTERLY CONSTRUCTION COST REVIEW
QUARTERLY CONSTRUCTION
THIRD QUARTER 2018
9COST REVIEW
THIRD QUARTER 2018
9
QUARTERLY CONSTRUCTION COST REVIEW
THIRD QUARTER 2018 9
 Gross Value of Construction Work Performed
7 – Mainland China

7
(RMB¥Billion)
8,000

7,000
GROSS VALUE OF CONSTRUCTION
WORK PERFORMED
MAINLAND CHINA
Building Building Services Others

Gross Value of Construction Work Performed

6,000
7 – Mainland China
(RMB¥Billion)
8,000
Notes:
5,000
1. Value of “Construction” includes builder’s Building Building Services Others
works and building services systems. 7,000

2. Value of “Installation” is for assembling

4,000
and installation of equipment for 6,000
industrial production, power, load-lifting,
transportation, medical and laboratory
uses, but excludes supply costs of such 5,000
equipment.3,000
3. Value of “Others” is generally maintenance 4,000
and other miscellaneous construction
activities.
2,000 3,000

2,000
1,000
1,000

0 0
2004 2005 2006 2007 2008
2004 2009
2005 20102007
2006 2011
2008 20122010 2013
2009 2011 201420132015
2012 2014 2016 20162017
2015 2017 2018
2018
Year
Year
Value Performed (RMB¥ Billion)
Quarter
Value2010
2009 Performed
2011 (RMB¥
2012 Billion)
2013 2014 2015 2016 2017 2018
Quarter A. Building
2009 2010 2011
1st Quarter 2012
882 2013
1,118 1,422 2014 1,994 2015
1,661 2,311 2016
2,544 2,712 2017
3,003 2018
3,382
2nd Quarter 1,537
A. Building
1,906 2,419 2,826 3,355 3,866 3,899 4,158 4,609 4,985
3rd Quarter 1,673 2,082 2,634 3,111 3,687 4,113 4,068 4,322 4,742 5,106
1st Quarter 882 1,118 1,422
4th Quarter 1,6613,318
2,572 1,994
4,016 2,311
4,427 5,078 2,544
5,425 2,712
5,517 5,9943,003
6,562 3,382
2nd Quarter 1,537 1,906 2,419
Year Total : 2,8268,424
6,664 3,355
10,490 3,866 14,115 3,899
12,025 15,714 4,158 17,1864,609
16,028 18,916 4,985
B. Building Services
3rd Quarter 1,673 2,082 2,634
1st Quarter
3,111
100 115
3,687
141
4,113
165 200
4,068
230
4,322
255 277
4,742
303
5,106
358
4th Quarter 2,572 3,318 4,016
2nd Quarter 4,427 183
153 5,078
214 5,425
251 300 5,517
333 5,994
331 366 6,562
405 438
3rd Quarter 173 196 224 271 322 346 363 374 437 459
Year Total : 6,664 8,424 10,490
4th Quarter
12,025333
277
14,115
378
15,714
413 514
16,028
517
17,186
548 561
18,916
646
Year Total : B.702Building
827 Services
957 1,100 1,336 1,426 1,498 1,578 1,791
C. Others
1st Quarter 100 115 141
1st Quarter 30
16538
200
47
230
57 69
25583 91
277 96
303113 358
129
2nd Quarter 153 183 214
2nd Quarter 48 251 60 300
69 86333 100 331
118 366
117 138 405154 438
187
3rd Quarter 56
3rd Quarter 173 196 224 271 66 77
322 97
346 123 126
363 126
374 137
437160 189
459
4th Quarter 86 107 133 166 189 205 216 222 262
4th Quarter 277 333 378
Year Total : 220
413 270
514
326
517
406 481
548
531
561
550 593
646689
Year Total : 702 827 957 1,100 1,336gross value
Annual 1,426 1,498
performed 1,578
(A + B + C) 1,791
Total : 7,586 C. Others
9,521 11,773 13,530 15,931 17,671 18,076 19,357 21,396
Source : National Bureau of Statistics of China
1st Quarter 30 38 47 57 69 83 91 96 113 129
Note : 1. Value of "Construction" includes builder’s works and building services systems.
2nd Quarter 48 60 69 2. Value86 of "Installation"100 118
is for assembling 117
and installation of equipment138 154 power,187
for industrial production,
load-lifting, transportation, medical and laboratory uses, but excludes supply costs of such equipment.
3rd Quarter 56 66 77 97 123 126 126 137 160 189
3. Value of "Others" is generally maintenance and other miscellaneous construction activities.
4th Quarter 86 107 133 166 189 205 QUARTERLY 216 CONSTRUCTION
222 COST262 REVIEW
THIRD QUARTER 2018
10
Year Total : 220 270 326 406 481 531 550 593 689

Annual gross value performed (A + B + C)

Total : 7,586 9,521 11,773 13,530 15,931 17,671 18,076 19,357 21,396
Source : National Bureau of Statistics of China
Source : National Bureau of Statistics of China
Note : 1. Value of "Construction" includes builder’s works and building services systems.
Note : 1. Value of “Construction” includes builder’s works and building services systems.
2. isValue
2. Value of “Installation” of "Installation"
for assembling and installationis for assembling
of equipment and
for industrial installation
production, of equipment
power, load-lifting, for industrial
transportation, production,
medical and laboratory uses, power,
but excludes supply costs of such equipment.
load-lifting,
3. Value of “Others” is generally transportation,
maintenance medical
and other miscellaneous and laboratory
construction activities. uses, but excludes supply costs of such equipment.
3. Value of "Others" is generally maintenance and other miscellaneous construction activities.
QUARTERLY CONSTRUCTION COST REVIEW
QUARTERLY CONSTRUCTION COST REVIEW THIRD QUARTER 2018
10
10 THIRD QUARTER 2018
8
8 HONG
GROSS VALUE OF CONSTRUCTION
WORK
KONG
– Gross
Hong Kong
PERFORMED
Gross Value of Construction Work Performed
Value of Construction Work Performed
8 – Hong Kong
(HK$Million)
70,000
(HK$Million)
70,000 Private sector sites Public sector sites Locations other than sites
60,000 Private sector sites Public sector sites Locations other than sites
60,000

50,000
50,000

40,000
40,000

30,000
30,000

20,000
20,000

10,000
10,000

0 0
19971997 1999
1999 2001
2001 2003
2003 2005
2005 2007
2007 2009
2009 2011
2011 20132013 2015 2015 2017 2017
YearYear
Value Performed (HK$ Million)
Quarter Value Performed (HK$ Million)
Quarter 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
A. Private sector sites
1st Quarter 8,600 6,349 7,529 A. Private
11,209 sector
11,675 sites
13,395 15,528 17,652 18,150 19,918
1st Quarter
2nd Quarter 8,600
9,055 6,349
9,276 7,529
8,458 11,209
12,260 11,675
12,176 13,395
12,507 15,528
17,284 17,652
19,530 18,150
19,070 19,918
19,690*
2nd Quarter
3rd Quarter 9,055
8,408 9,276
7,360 8,458
9,192 12,260
12,481 12,176
11,848 12,507
12,792 17,284 19,252
16,849 19,53017,912
19,070 19,690*
3rd Quarter
4th Quarter 8,408
7,543 7,360
7,322 9,192
10,102 12,481
13,411 11,848
13,781 12,792
15,259 16,849 21,231
18,119 19,25219,813
17,912
4th Quarter
Year Total : 7,543
33,606 7,322
30,307 10,102
35,281 13,411
49,361 13,781
49,480 15,259
53,953 18,119 77,666
67,781 21,23174,945
19,813
39,608*
Year Total : 33,606 30,307 35,281 B. 49,361
Public sector sites 53,953
49,480 67,781 77,666 74,945 39,608*
1st Quarter 3,967 6,511 9,880 B. 13,168 16,829 sites
Public sector 18,258 18,531 19,414 20,639 21,533
2nd Quarter
1st Quarter 4,652
3,967 6,937
6,511 9,263
9,880 12,023
13,168 14,690
16,829 15,397
18,258 18,964
18,531 17,780
19,41422,827 19,518*
20,639 21,533
3rd Quarter 4,428 8,651 10,814 12,137 13,792 16,253 18,163 21,878 20,934
2nd Quarter 4,652 6,937 9,263 12,023 14,690 15,397 18,964 17,780 22,827 19,518*
4th Quarter 5,605 9,117 12,113 17,332 16,976 18,915 21,585 22,295 23,455
3rd Quarter 4,428 8,651 10,814 12,137 13,792 16,253 18,163 21,878 20,934
Year Total : 18,652 31,216 42,070 54,660 62,287 68,823 77,242 81,367 87,855 41,051*
4th Quarter 5,605 9,117 12,113 17,332 16,976 18,915 21,585 22,295 23,455
C. Location other than sites
Year Total : 18,652 31,216 42,070 54,660 62,287 68,823 77,242 81,367 87,855 41,051*
1st Quarter 11,750 11,926 12,172 13,347 15,140 17,90919,549 18,809 19,963 22,871
2nd Quarter 12,415 12,109 C.
11,620 Location
13,245 other than20,327
15,914 sites 18,744 18,041 20,657 22,335*
1st Quarter
3rd Quarter 11,750
11,969 11,926
12,620 12,172
12,953 13,347
14,358 15,140
16,038 17,909
18,636 19,549
19,520 18,809
19,274 19,963
22,093 22,871
2nd Quarter
4th Quarter 12,415
12,552 12,109
13,097 11,620
14,439 13,245
16,479 15,914 20,088
17,716 20,327 21,111
18,744 21,333
18,04124,406
20,657 22,335*
3rd Quarter
Year Total :11,969
48,686 12,620
49,752 12,953
51,184 14,358
57,429 16,038 76,961
64,808 18,636 78,924
19,520 77,458
19,27487,119
22,093
45,206*
4th Quarter 12,552 13,097 14,439 16,479 17,716 20,088 21,111 21,333 24,406
Annual gross value performed (A + B + C)
Year Total : 48,686 49,752 51,184 57,429 64,808 76,961 78,924 77,458 87,119 45,206*
Total : 100,944 111,275 128,535 161,450 176,575 199,737 223,946 236,491 249,919 125,865*
* Provisional Annual gross value performed (A + B + C)
*Provisional
Source :Total
Census: and
100,944 111,275 Hong
Statistics Department, 128,535
Kong SAR 161,450 176,575 199,737 223,946 236,491 249,919 125,865*
* Provisional
Source : Census and Statistics Department, Hong Kong SAR

QUARTERLY CONSTRUCTIONQUARTERLY
COST REVIEW
CONSTRUCTION COST REVIEW
Source : Census and Statistics Department, Hong Kong SAR THIRDTHIRD
QUARTER 2018
QUARTER 2018 11 11
QUARTERLY CONSTRUCTION COST REVIEW
 9 APPROXIMATE BUILDING COSTS
FOR MAJOR CITIES
ASIA

Shanghai Beijing Guangzhou/Shenzhen Chongqing/Chengdu

BUILDING TYPE
RMB / m2 CFA
DOMESTIC
Apartments, high rise, average standard
- Shell and core 2,709 - 3,124 2,687 - 3,099 2,501 - 2,772 2,409 - 2,828
- Full fit 4,633 - 5,136 4,253 - 4,673 3,707 - 4,100 3,715 - 4,450
Apartments, high rise, high end
- Shell and core 3,308 - 3,604 3,170 - 4,599 2,616 - 3,450 2,974 - 3,944
- Full fit 10,782 - 11,774 10,299 - 11,732 6,024 - 6,602 6,104 - 7,732
Terraced houses, average standard
- Shell and core 3,133 - 3,348 3,100 - 3,620 2,815 - 3,095 2,996 - 3,642
- Full fit N/A 6,085 - 6,597 N/A N/A
Detached houses, high end
- Shell and core 4,651 - 5,166 4,673 - 5,199 3,840 - 4,224 3,979 - 4,591
- Full fit N/A 11,694 - 12,205 N/A N/A
OFFICE / COMMERCIAL
Medium/high rise offices, average standard 6,026 - 8,019 5,946 - 8,006 5,396 - 5,969 5,823 - 6,766
High rise offices, prestige quality 8,035 - 10,032 8,006 - 13,152 7,857 - 9,444 7,403 - 10,034
Out-of-town shopping centre,
average standard N/A 4,533 - 6,059 5,198 - 5,706 4,659 - 6,018
Retail malls, high end 8,521 - 11,003 8,199 - 11,286 7,554 - 10,557 7,044 - 10,442
INDUSTRIAL
Industrial units, shell only.
(Conventional single storey framed unit) 1,945 - 2,372 1,873 - 2,286 3,451 - 3,799 2,809 - 3,580
Owner operated factories, low rise, light
weight industry 3,001 - 3,747 3,620 - 4,153 N/A N/A
HOTEL
Budget hotels - 3-star, mid market 6,608 - 8,111 6,706 - 8,266 6,839 - 7,526 6,449 - 8,004
Business hotels - 4/5-star 10,801 - 14,711 11,206 - 14,799 11,053 - 15,777 10,924 - 13,680
Luxury hotels - 5-star 14,689 - 17,614 14,279 - 18,365 15,025 - 16,558 13,755 - 16,905
OTHERS
Underground/basement car parks 5,146 - 7,172 5,179 - 5,693 3,560 - 5,691 2,810 - 3,830
(<3 levels)
Multi storey car parks, above ground 2,649 - 3,690 3,113 - 3,153 2,551 - 2,803 2,141 - 2,675
(<4 levels)
3,664 - 4,695 3,606 - 4,660 2,824 - 3,112 2,890 - 3,216
Schools (primary and secondary)
Students’ residences 2,616 - 3,661 2,553 - 3,606 1,836 - 2,060 N/A
Sports clubs, multi purpose sports/
leisure centres (dry sports) 6,625 - 8,134 6,179 - 6,226 5,235- 5,775 N/A
General hospitals - public sector 9,842 - 12,766 8,119 - 10,166 N/A N/A
Notes :
1. The costs for the respective categories given above are averages based on fixed price competitive tenders. It must be understood that the actual cost of a building will depend upon the design and many other factors
and may vary from the figures shown.
2. The costs per square metre are based on Construction Floor Areas (CFA) measured to the outside face of the external walls / external perimeter including lift shafts, stairwells, balconies, plant rooms, water tanks and the like.
3. All bulidings are assumed to have no basements (except otherwise stated) and are built on flat ground, with normal soil and site conditions. The cost excludes site formation works, external works, land cost, professional fees,
finance and legal expenses.
4. The standard for each category of building varies from region to region and do not necessary follow that of each other.
5. “Shell and core”: generally covers ONLY base building elements. “Shell” refers to overall structure and foundations, exterior walls, floors and roof, completing with common areas, staircases, lift shafts, service ducts and fire
services systems to local statutory requirements. “Core” refers to fully-fitted public areas (like lobbies, corridors and lavatories) and M&E main plant and upfeed, with tenant or occupant areas unfurnished.
6. “Full fit” buildings should complete with all elements that allow the buildings to be ready for operation, including public and tenants’ (or occupants’) areas (i.e. with ALL finishes, fittings and M&E distributions).
7. Fluctuation in exchange rates may lead to changes in construction costs expressed in U.S. dollars.
* The above costs are at 3rd Quarter 2018 levels.

QUARTERLY CONSTRUCTION COST REVIEW

12 THIRD QUARTER 2018
 9 APPROXIMATE BUILDING COSTS
FOR MAJOR CITIES
ASIA

Hong Kong Macau Singapore Kuala Lumpur

BUILDING TYPE
USD / m2 CFA (See also exchange rates per U.S. dollar below)
DOMESTIC HK$ 7.83 MOP 8.07 S$1.37 RM 4.14
Apartments, high rise, average standard
- Shell and core N/A 1,770 - 2,623 N/A N/A
- Full fit 3,052 - 3,576 2,279 -2,788 1,315 - 1,495 420 - 585
Apartments, high rise, high end
- Shell and core N/A 2,623 - 3,934 N/A N/A
- Full fit 4,036 - 4,713 3,183 - 4,864 2,045 - 3,065 880 -1,125
Terraced houses, average standard
- Shell and core N/A 3,107 -3,858 N/A N/A
- Full fit 4,151 - 4,853 3,884 - 4,635 1,715 - 1,935 235 - 345
Detached houses, high end
N/A 3,756 - 5,411 N/A N/A
- Shell and core
- Full fit 6,130 up 4,737 - 6,163 2,190 - 2,920 790 - 980
OFFICE / COMMERCIAL
Medium/high rise offices, average standard 2,989 - 3,512 2,623 - 3,387 1,715@ - 1,935@ 640 - 740
High rise offices, prestige quality
3,640 - 4,278 3,387 - 3,705 1,935@ - 2,115@ 920 - 1,250
Out-of-town shopping centre,
average standard 2,963 - 3,538 2,470 - 3,705 1,935 - 2,045 585 - 720
Retail malls, high end 3,972 - 4,738 3,884 - 4,686 2,045 - 2,265 725 - 1,000
INDUSTRIAL
Industrial units, shell only.
(Conventional single storey framed unit) N/A N/A 730 - 935 340 - 430
Owner operated factories, low rise, light
weight industry 2,324 - 2,963 N/A N/A 460 - 520
HOTEL
Budget hotels - 3-star, mid market 3,857 - 4,176 3,451 - 3,909 2,155 - 2,370 1,070 - 1,490
Business hotels - 4/5-star 4,036 - 4,738 4,686 - 5,602 2,775 - 3,140 1,840 - 2,160
Luxury hotels - 5-star 4,725 - 5,492 5,602 - 6,621 2,775 - 3,140 2,055 - 2,395
OTHERS
Underground/basement car parks 3,193 - 3,831 2,050 - 3,005 935 - 1,265 380 - 530
(<3 levels)
Multi storey car parks, above ground 1,916 - 2,299 1,133 - 1,490 640@@ - 935@@ 245 - 350
(<4 levels)
2,516 - 2,708 2,266 - 2,623 N/A 265 - 310
Schools (primary and secondary)
Students’ residences 2,925 - 3,308 1,795 - 2,088 1,570 - 1,715 315 - 370
Sports clubs, multi purpose sports/
leisure centres (dry sports) 3,831 - 4,470 N/A 1,970 - 2,115 630 - 740
General hospitals - public sector 4,955 - 5,594 N/A 2,775 - 2,920 920 - 1,160

Notes :
1. The costs for the respective categories given above are averages based on fixed price competitive tenders. It must be understood that the actual cost of a building will depend upon the design and many other factors
and may vary from the figures shown.
2. The costs per square metre are based on Construction Floor Areas (CFA) measured to the outside face of the external walls / external perimeter including lift shafts, stairwells, balconies, plant rooms, water tanks and the like.
3. All bulidings are assumed to have no basements (except otherwise stated) and are built on flat ground, with normal soil and site conditions. The cost excludes site formation works, external works, land cost, professional fees,
finance and legal expenses.
4. The standard for each category of building varies from region to region and do not necessary follow that of each other.
5. “Shell and core”: generally covers ONLY base building elements. “Shell” refers to overall structure and foundations, exterior walls, floors and roof, completing with common areas, staircases, lift shafts, service ducts and fire
services systems to local statutory requirements. “Core” refers to fully-fitted public areas (like lobbies, corridors and lavatories) and M&E main plant and upfeed, with tenant or occupant areas unfurnished.
6. “Full fit” buildings should complete with all elements that allow the buildings to be ready for operation, including public and tenants’ (or occupants’) areas (i.e. with ALL finishes, fittings and M&E distributions).
7. Fluctuation in exchange rates may lead to changes in construction costs expressed in U.S. dollars.
* The above costs are at 3rd Quarter 2018 levels.

QUARTERLY CONSTRUCTION COST REVIEW

THIRD QUARTER 2018 13
 9 APPROXIMATE BUILDING COSTS
FOR MAJOR CITIES
ASIA

Bangkok Jakarta Manila

BUILDING TYPE
USD / m2 CFA (See also exchange rates per U.S. dollar below)
DOMESTIC BAHT 32.75 IDR 14603.00 PHP 52.75
Apartments, high rise, average standard
- Shell and core 534 - 687 N/A N/A
- Full fit 702 - 870 722 - 818 935 - 1,150
Apartments, high rise, high end
- Shell and core 626 - 809 N/A N/A
- Full fit 977 - 1,206 996 - 1,124 1,262 - 2,135
Terraced houses, average standard
- Shell and core 305 - 397 N/A N/A
- Full fit 458 - 565 383 - 499 760 - 929
Detached houses, high end 534 - 763 N/A N/A
- Shell and core 794 - 962 1,042 - 1,165 1,627 - 2,759
- Full fit
OFFICE / COMMERCIAL
Medium/high rise offices, average standard 641 - 794 712 - 789 931 - 1,090
High rise offices, prestige quality 870 - 1,176 1,050 - 1,174 1,262 - 1,408
Out-of-town shopping centre,
626 - 809 612 - 676 760 - 947
average standard
Retail malls, high end 840 - 886 676 - 731 1,090 - 1,528
INDUSTRIAL
Industrial units, shell only.
489 - 611 328 - 357 484 - 545
(Conventional single storey framed unit)
Owner operated factories, low rise, light N/A 356 - 393 683 - 799
weight industry
HOTEL
Budget hotels - 3-star, mid market 1,145 - 1,267 1,237 - 1,462 1,193 - 1,330
Business hotels - 4/5-star 1,466 - 1,679 1,691 - 1,826 1,344 - 1,628
Luxury hotels - 5-star 1,710 - 1,985 1,799 - 2,028 1,847 - 2,557
OTHERS
Underground/basement car parks 550 - 733 506 - 620 493 - 618
(<3 levels)
Multi storey car parks, above ground 183 - 293 328 - 357 474 - 669
(<4 levels)
N/A N/A 699 - 964
Schools (primary and secondary)
Students’ residences N/A N/A 740 - 949
Sports clubs, multi purpose sports/ N/A 1,094 - 1,638 1,183 - 1,721
leisure centres (dry sports)
General hospitals - public sector N/A N/A 1,284 - 1,543

Notes :
1. The costs for the respective categories given above are averages based on fixed price competitive tenders. It must be understood that the actual cost of a building will depend upon the design and many other factors
and may vary from the figures shown.
2. The costs per square metre are based on Construction Floor Areas (CFA) measured to the outside face of the external walls / external perimeter including lift shafts, stairwells, balconies, plant rooms, water tanks and the like.
3. All bulidings are assumed to have no basements (except otherwise stated) and are built on flat ground, with normal soil and site conditions. The cost excludes site formation works, external works, land cost, professional fees,
finance and legal expenses.
4. The standard for each category of building varies from region to region and do not necessary follow that of each other.
5. “Shell and core”: generally covers ONLY base building elements. “Shell” refers to overall structure and foundations, exterior walls, floors and roof, completing with common areas, staircases, lift shafts, service ducts and fire
services systems to local statutory requirements. “Core” refers to fully-fitted public areas (like lobbies, corridors and lavatories) and M&E main plant and upfeed, with tenant or occupant areas unfurnished.
6. “Full fit” buildings should complete with all elements that allow the buildings to be ready for operation, including public and tenants’ (or occupants’) areas (i.e. with ALL finishes, fittings and M&E distributions).
7. Fluctuation in exchange rates may lead to changes in construction costs expressed in U.S. dollars.
* The above costs are at 3rd Quarter 2018 levels.

QUARTERLY CONSTRUCTION COST REVIEW

14 THIRD QUARTER 2018
 9 APPROXIMATE BUILDING COSTS
FOR MAJOR CITIES
ASIA
BUILDING TYPE OUTLINE SPECIFICATION
DOMESTIC
Apartments, high rise, average standard Shell and core, including finishes to public area, but excluding finishes
to apartment units
Full fit, with air-conditioning, kitchen cabinets and home appliances,
but excluding decorative light fittings and loose furniture
Apartments, high rise, high end Shell and core, including finishes to public area, but excluding finishes
to apartment units
Full fit, good quality provisions, with air-conditioning, kitchen cabinets and home
appliances, but excluding decorative light fittings and loose furniture
Terraced houses, average standard Shell and core, joined houses in row(s), excluding garden, parking, finishes and
fittings to house interior
Full fit, joined houses in row(s), with air-conditioning, kitchen cabinets and home
appliances, but excluding decorative light fittings, loose furniture, garden and
parking
Detached houses, high end Shell and core, good quality facade, excluding garden, parking, finishes and fit-
tings to house interior
Full fit, good quality provisions, with air-conditioning, kitchen cabinets and home
appliances, but excluding decorative light fittings, loose furniture, garden and
parking
OFFICE / COMMERCIAL
Medium/high rise offices, average standard RC structure, curtain wall, including public area fit-out, tenant area with raised
High rise offices, prestige quality floor/ carpet, painted wall and false ceiling
Out-of-town shopping centre, average standard Including public area fit-out and M&E, but excluding shop fit-out
Retail malls, high end
INDUSTRIAL
Industrial units, shell only (Conventional single storey framed unit) RC structure with steel roof and M&E to main distribution, but excluding a/c,
heating and lighting
Owner operated factories, low rise, light weight industry RC structure, including small office with simple fit-out and M&E, but excluding
a/c and heating
HOTEL
Budget hotels - 3-star, mid market 1) Interior decoration
Business hotels - 4/5-star 2) Furniture (fixed and movable)
3) Special light fittings (chandeliers, etc.)
Luxury hotels - 5-star 4) Operating Supplies and Equipment (OS&E) excluded
OTHERS
Underground/basement car parks (<3 levels) RC structure
Multi storey car parks, above ground (<4 levels) RC structure, natural ventilation, no facade enclosure
Schools (primary and secondary) Including fit-out and a/c, but excluding educational equipment
Students’ residences Including fit-out, loose furniture and a/c
Sports clubs, multi purpose sports/leisure centres (dry sports) Dry sports (no swimming pool) and are for ‘leisure centre’ type schemes includ-
ing main sports hall, ancillary sports facilities, changing and showers, restaurant
/ cafe, bar, etc. Costs include a/c, Furniture, Fittings and Equipment (FF&E)
General hospital - public sector Excluding medical and operating equipment

Notes:
1. The costs for the respective categories given above are averages based on fixed price competitive tenders. It must be understood that
the actual cost of a building will depend upon the design and many other factors and may vary from the figures shown.
2. The costs per square metre are based on Construction Floor Areas (CFA) measured to the outside face of the external walls / external
perimeter including lift shafts, stairwells, balconies, plant rooms, water tanks and the like.
3. All buildings are assumed to have no basements (except otherwise stated) and are built on flat ground, with normal soil and site
conditions. The cost excludes site formation works, external works, land cost, professional fees, finance and legal expenses.
4. The standard for each category of building varies from region to region and do not necessarily follow that of each other.
5. “Shell and core” generally covers ONLY base building elements. “Shell” refers to overall structure and foundations, exterior walls, floors
and roof, completing with common areas, staircases, lift shafts, service ducts and fire services systems to local statutory requirements.
“Core” refers to fully-fitted public areas (like lobbies, corridors and lavatories) and M&E main plant and upfeed, with tenant or occupant
areas unfurnished.
6. “Full fit” buildings should complete with all elements that allow the buildings to be ready for operation, including public and tenants’
(or occupants’) areas (i.e. with ALL finishes, fittings and M&E distributions).
7. Fluctuation in exchange rates may lead to changes in construction costs expressed in U.S. dollars.
8. Hong Kong: * (i) Tenant area with screeded floor, painted wall and ceiling (ii) Facade in curtain wall/window wall ** Public authority
standard, no a/c and complete with basic external works Singapore: @ Excluding carpet @@ Open on all sides with parapet
Kuala Lumpur $ 6-12 units per floor, 46m2 - 83m2 per unit; excluding air-conditioning $$ Excluding air-conditioning, Kitchen cabinets
and home appliances $$$Exclude Tenant fit-out $$$$ Standard government provisions $$$$$ University standard Bangkok # (i)
Excluding raised floor/carpet and inter-tenancy partition (ii) Facade in windows and brick wall/pre-cast concrete panel ## Excluding
raised floor/carpet and inter-tenancy partition Seoul ∆ Excluding home appliance ∆∆ Curtain wall to external wall ∆∆∆ Steel
structure ∆∆∆∆ Medium to high grade cladding, with garden ∆∆∆∆∆ Mechanical ventilation and car guidance system

QUARTERLY CONSTRUCTION COST REVIEW

THIRD QUARTER 2018 15
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QUARTERLY CONSTRUCTION COST REVIEW

16 THIRD QUARTER 2018
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